DBA LLC or PArtner ship Please help...

alexmasternyc · #1 09-04-2014

Im looking first of all a legit second chance at selling on ebay; i currently am selling through my sister's account on eBay (doing fine so far)- i wonder if we can form some type of partnership without really having to spend hundreds of dollars in stupid DBA and LLC. But i also want to report all my earnings to IRS so i can get income taxed and everything i want to do this full time my business has been doing good selling used rare and vintage items.

I want to go legit way to register everything report taxes on it without having to give my SSN (becauase it would link to my old banned account). I wished i can do DBA and wished i can do LLC but at the end of the day eBay will still ask for a SSN- i called and asked several times even for a merchant account so im scared of doing a DBA or LLC in vain to come to find out that after spending all that time and money they would ask for my SSN and then again linked it to my old acc then BAAAM im banned.

bjammin · #2 09-04-2014

When you approach 200 items OR $20k in sales through PP, you will be asked to provide a SSN or a EIN. If you provide a SSN then they have a very good chance of linking you and you will lose that account. This really depends on what info EB had previous on you. Please not that they throw nothing away but your hopes and dreams.

I may be wrong about the following, but I do not think that I am. So anyone with a different POV, please chime in. If you file as a sole proprietorship or partnership, then it will come back on your SSN and your name. If you form an LLC (corporation), then you get an EIN. PP will only match up your business name and EIN.

As far as reporting to IRS, you must sell 200 items AND bring $20k through your PP. If you do not break both thresholds, then you are not reported to the IRS.

yankee · #3 09-04-2014

You are correct bjammin

As for your structure of an LLC or Corp etc.. you should seek help from your accountant for tax and legal/asset protection strategy.

alexmasternyc · #4 09-05-2014

Thank you so much guys. Now i have a question my credit is bad. Should i be the signer of the LLC? would i have a problem opening a bank account under that LLC? Listen i just wanna sell legit merchandise and play by the rules i need an expert on this matter someone who already filed and LLC and has been selling for years, if possible i can make their advice worth the while. Thanks

bjammin · #5 09-05-2014

You can open a bank account in your own name or the business name. PP will not see the name on the account. I have about 4 stealths with business PP. They go into a bank account with my personal name on the account. I have no issues receiving payments from my business PP to my bank account. Please remember it has to be a bank account that has not been used with PP before, or you will be linked. For accounting purposes, and if you don't mind, a business bank account would be better and def not draw questions by the bank. I have never been questioned by a bank either, but I am sure it has happened.

I do not think your credit will be an issue at most banks. Some smaller banks may not like your credit. In fact if you have an account already, I would use the same bank to open a new account. That might be your best bet.

yankee · #6 09-05-2014

Credit and bank account is not related in the USA. If you have issues with checksytems, you are going to have issues no matter what, even with an LLC because you are a signer.